don't you think? that's tonight's show, thank you for joining us, dvr the show if you can't catch us live. have a great night and see you back here tomorrow. ♪ lou: good evening, everybody, and thanks for be with us. the united states tonight responding to rhetoric spewing from north korea moving more military assets into the region. the u.s. navy guided a missile droir into the waters off the korean peninsula, two f22 rapture aircraft joined exercises, and fox news confirmed with the department of defense that the northward movement of the destroyer is not part of the ongoing joint south korean war game. the move's coming after a north korean dictator, kim jung un,

declared a, quote, state of war with south korea over the weekend. white house officials stress there's no evidence of north readying a missile strike or large scale north korean troop movements signaling what would be an imminent attack on the south. >> i would note that despite the harsh rhetoric heard, we are not seeing changes to the north korean military posture such as large scale mobilization and positioning of forces. lou: south korean president today gave her country's military the go ahead to engage with the enemy saying that her nation is taking the escalating threats from the north very seriously. fox said, quote, as commander in chief of the armed forces, i'll trust the military's judgment on abrupt and surprise provocations by north korea. china, not standing still as tensions rise on the korean

peninsula. china building up the military presence along the north eastern border with north korea, defense officials confirming to the washington free beacon that china has been stepping up mobilization since mid-march, including the people's liberation army troop movements that are increasing at a rising number of chinese air force fighter jets in the area, and naval live fire exercises by its warships in the yellow sea. all of this happens as tensions ease escalate between the united states and dprk. china, north korea's closest ally. other stories tonight include the markets heading into the second quarter after a record setting beginning of the year, wall street veteran bob doll joins us to steel us how far bulls run. colorado prosecutors rejected a plea deal for aurora gunman, james holmes, choosing to seek the death penalty for the mass

murder. dobbs law takes up the case tonight. immigration reform negotiations still behind closed doors, still being conducted in secret with new reports that the border is becoming less, not more sker. katie and steven hayes the guest tonight. a weekend deal over guest worker visas has members of the so-called gang of 8 in the senate optimistic that immigration reform may soon be a reality. others are warning that rushing into a vote without open hearings and public scrutiny would wreck their efforts. fox news chief congressional correspondent mike e manual with our report. >> with much of washington buzzing about a possible immigration deal, florida republican ruboi said it's premature. another leading republican suggested a wait and see approach. >> eight senators working on it, agreeing to four talking points,

have to take the talking points to complex legislation. >> with labor and business groups announcing over the weekend there's agreement on a guest worker program for low skilled immigrants, a democrat was eager to declare victory. >> every major policy issue resolved, and know everyone, we agreed there's not a final agreement until we see draft legislative language, and we agree on that. >> reporter: for many republicans, there's a critical component to getting it done. >> need border security, and eight guys in a room saying it's not enough, for 27 years they have not secured the border. >> lawmakers press janet napolitano to have a minimum standard, and other aspects of immigration reform should not be contingent on securing the border. >> relying own one thing as a so-called trigger 1 not the way -- is not the way to go. there needs to be certainty in the bill, so that people know

when to legalize and then when the pathway to citizenship earns citizen opens up. >> he didn't want a pathway to citizenship for border security. >> it's never going to be 110% perfect, but we'll continue to improve it, and at the same time provide a clear path way for those who are already here and who've invested lives here, and many of them with american-born children. >> house republican involved in immigration talks questions the commitment and says without security, reform dies. >> we have to have border security, the united states has to determine who comes in and leaves. it's a national security issue, also an issue that affects our economy. i don't know what motivates the president. it's clear that he's trying to torpedo the deal. >> senator rubio called for an open process meaning hearings and amendments to get buy-ins from other senators. g.o.p. leaders say if the white house or other democrats try to rush it, that is a sign they are

trying to kill it. lou? lou: thank you very much, mike. fox news chief congressional correspondent. the application process starts today. this is the existing program. american companies are expected to fill every available slot by this friday, a total of 65,000h1b visas go to foreigners with at least a bachelor's degree and 20,000 go to foreign nationals with advanced degree from american university. the last time businesses reached the limit within a week was back in 2008. with more than 20 million americans now out of the work or given up looking for work all together, the question of foreign workers displacing american worker is likely to be reignited. joining us tonight, katie, news editor at townhall.com, good to have you with us, and steven, weekly writer for with the the week by standard," thank you,

both, for being here, and katie, beginning with you. we heard it said that the president seems to be trying to kill comprehensive immigration reform demanding acceleration in the process and suddenly talking saying he wants a path way, your reaction? >> i think president obama's move on sequester to use border patrol money to not staff the border, but, instead, fund managers within border patrol, putting some of the border areas at risk not manning the areas proves he's trying to kill this. that means there's less border security and not more as parts of the border are not secured, and we have seen now that the only part of this that made it bipartisan up to the point is that border security, and we have janet napolitano and president obama and those under

them saying we're not making a border security standard before we get this path to citizenship rolling. it's clear they are not interested in making the border secure before moving forward with the legislation, and chuck schumer's comments over the weekend also say that. lou: schumer talking as if the deal were done, steve, and this business suddenly pushing back against the idea there's a definition for border security. the department of homeland security has been charged with defining precisely that for the past more now than two years. what's going on? >> right, rye. it's not the first time chuck has been premature in declaring a deal was done before a deal was done. he's got a long history of doing that. look, it's not clear yet that president obama wants to kill this, i think it's equally likely that he wants it pulled further left. if you're the president looking at this from the white house's perspective, you think i'm going to continue to pull this thing

to the left, continue to make demands, harder on republicans, but give the something closer to what i want, and more interestingly, and i think more pressingly, closer to what the democratic interest groups want, he wins either way, wins if it's done because he blames republicans and runs on it in 2014 and wins if he gets this new comprehensive immigration reform to pull the bill left. there's a line in a "politico" piece today about this issue that says democrats in the white house are -- they're feeling all of this pressure to scrap all of the considerations of border security. that's really quite a big step. >> yeah, but the "politico" and others left out one component of the context, and that is that immigration reform or change in immigration law is way down the list of priorities for american voters, and poll after poll does not rank near the top. kate, you reported today the number of people crossing the

border has doubled rather than declined or met any standard of security, and is this happening across the border in your best judgment? >> it is. i've had multiple border patrol agents contact me from arizona to texas saying they've seen a doubling and tripling of illegal foot traffic coming across the border with illegal immigrants asking where they go for amnesty knowing that the border is not secure, and you is the administration talking out of both sides. you have janet napolitano for years now saying the border is more secure than ever, but you talk to the people on the ground doing the hard work, and they say, no, no, no, as soon as the talk about amnesty and a deal started, we've seen this traffic double, and it's not just with the border patrol, but with the county sheriff's department as well, a local and state issue as well as a federal issue. they are not guys coming across with their ten-gallon bottle of water. the photos at townhall.com, and they are holding ak-47 style weapons using this as a way to

get into the country. lou: as to the issue of workers coming across the border, the announcement that the afl-cio, steve, and the u.s. chamber of commerce reached agreement on the terms of a guest worker program, the so-called w visas, was hailed as progress and an advance. did i miss something? when did the afl-cio and u.s. chamber of commerce become agencies of the federal government? >> well, one could be very cynical and argue quite a long time ago, but i won't. i won't. look, you know, this is part of the problem with this whole discussion. i think it's one of the reasons that senator rubio came out so quickly saying, looking all of this needs to slow down. we need additional transparency saying the gang of eight remits seven states, 92 senators do not have a voice on, insisting on a voice, and i think the senator

intends to slow it down considerably, hold a series of hearings, and force a national discussion that the white house, frankly, doesn't want. i think the white house would like to pass a bill, a huge bill, once again, where people don't know what is in it and can't raise objections to things that i think many voters find objectionable. lou: to do obamacare again, the only one that's worked for them so far, and now we're finding out it's not working for many other people. steven, thank you very much, katie, thank you very much. we appreciate you both being here. >> thanks. >> thanks, lou. lou: much more on secretive closed door negotiations on immigration reform and the positioning of the republican party on the issue throughout tonight's broadcast. stay with us, a lot to come. ♪ stockton, california is the biggest city ever to go bankrupt, and it won't be the last. we'll have the frightening figures in tonight's chalk talk.

bulls dominated the stock market in the first quarter. it's not so clear what's happening in the second quarter. bob doll joins us next to tell us what lies ahead. with the spark cash card

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lou: bulls rule the first quarter after a gain and a quarter percent year to date. we'll find out what the future holds. bob, the chief equity strategist for asset management joining us tonight, but, first, look at what happened on wall street today, stocks lower on the first day of the new quarter. news of unexpected weakness in manufacturing, the dow down six points, almost, and the s&p 500 down seven. the nays deck dropped 28 points,

and volume on the big board trading 2.7 billion shares following the pattern of late. the technology sector and the two worst performing stocks in the dow, hp down more than 2%, intel down slightly under 2%. in the commodity market, gold up to $1600 an ounce, and crude oil at 97.07 a barrel. rates slipping a little, and the yield on the temperature-year treasury down to 11.84%. our guest says we're in an ideal, an ideal environment for stocks. joining us now with the outlook, bob, chief equity strategist, asset manager, great to have you with us. people have to be reeling at the idea we talk about -- you're talking about an ideal environment for stocks, welcomed news and what makes it so? >> well, it's ideal for the market, not necessarily ideal for the economy. i think there's two different

things, and ideal environment for the target is acceptable, but not great economic growth, a little bit below trend, if you will, keeping the fed and other central banks on the edge of their chairs providing liquidity because they want to get things moving, and a low inflation rate and earnings that move forward and at reasonable pace. different from what you'd want if the economy was your focus, then you want stronger growth, but the stock market says when's inflation coming back, when does the fed finish? lou: when is inflation coming back? have we put the concerns and fears about deflation to the side? is the fed getting the result it intended? >> well, the fed has a blueprint instrument, as you knowings lou, and they throw money at the system, hoping to replace. i think they are having some success, some improvement in economic growth, in most economic statistics, retail sales, ism surveys, today's

manufacturing, one disappointing, the job's numbers, unemployment claims, all slowly improving so i think they are breathing a tentative sigh of relief, if you will, about the work over the last few years. lou: hearing from various people, and david stockman has a new book out now, talking about the end of the world. we have bill gross and, you know, they seem to talk up bonds no matter what they talk about, comes back to the bond market. who is right here? why is there such -- >> well, if you believe that the economy is going to fail, and we're going to have debt problems all over again, then you don't want too many stocks and want bonds. that's what took yields on ten-year treasuries down to 1.5%, not that many months ago. that's a bad recession, almost a depression sort of environment. if you, on the other hand, think

some of the tools are beginning to work, that growth is beginning to improve, then i think you have to be leery of bonds with a ten-year treasury under 2%, and enjoy some gains in the stock market. lou: you're council right now, you're talking about ideal conditions for this market. is it your sense that this -- we're now in the fifth year of this bull run, is it your sense that we've got quite a bit of time left? >> well, i think what we have left is economic runway, that is to say we're just beginning to get an economic recovery that we can bother to talk about, if you will. we're not going to go straight up, lou, you know that story. stock markets don't move straight up, although the first quarter felt that way. we'll get pull backs and corrections, but as long as economic growth is acceptable, earnings improve, and inflation's not a problem, i think we've got a lot more to go at least in time. lou: all right. well, we couldn't ask for more.

a brighter outlook, and, bob, thank you very much for your view. >> thank you. lou: the weekend box office, turns out people wanted to see the sequel to the critically panned gi: joe, rise of the cobra. retaliation debuted in first place taking in more than $40 million since friday, 51.7 million opening wednesday night, and that is just $3 # million less than the first gi joe film, and paaamount pictures aaready planning, you guessed it, a third installment. last week's number one, the crudes, dropping to second place under 27 million, and tyler perry's temptation in third place, 21 #.6 million for lion's game. stockton, california becomes the largest bankrupt city in america. it will not be the last. we're going to look at the chalk talk about the reality that now confronts financial america, and

aurora, colorado shooter with a new reality, james holmes faces the death penalty. dobbs law on the case, next. [ male announcer ] how can power conmption in china, impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of ourutual funds beat their 10-year lipper average. twe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing.

lou: a federal judge today ruled that the city of stockton, california is eligible for federal bankruptcy protection. that makes it the most, well, the largest city by population in the country to go bankrupt. stocktonments to default on $165 million loan that it borrowedded back in 2007. to pay an installment on it, $900 million that it still owes to the california public employees retirement system known as calpers. california law makes it official that debts to the state pension fund must be honored no matter what. to heck with your bankruptcy. to heck when whatever, but today's ruling brings federal

law in over the top of california law, and stockton will not have to pay its debts in full because it is now bankrupt. calpers or no calpers, which is, actually, only a trustee in this proceeding, so how does the city of stockton get into such a big mess, so much drabble? well, for one, stockton that hae most generous health care benefits in the state of california, and, folks, that is saying something. the city of stockton california with just about a 19% unemployment rate has lost 70% of the tax base over the last ten years. that municipality offered full health care coverage for life for all of its employees, no matter how long they worked that, all retirees, plus a dependent, just one dependent. can you believe that they couldn't be more jeep rows? nearly a quarter of the workers in stocktop's payroll last year,

a quarter earned more than a hundred thousand dollars, that's down from 30% in 2010. stockton, however, is not alone in its troubles, and many expect detroit, michigan to surpass stockton has the biggest city to file for bankruptcy. that's coming up soon in detroit. the city there owes roughly, well -- this makes them, you know, this is just minor potatoes. detroit's the big leagues, all right? we're talking $14 billion in detroit in retiree pension benefits and long term bond debt. got to go east to go to baltimore, a report from an outside consulting firm was brought in to help baltimore face bankruptcy if they don't take drastic steps to close the budget short fall. that budget short fall will be $2 billion over the next decade. a little minor item. the pension system for most city

workers in baltimore? $700 million in unfunded liability. 700 million. it's -- it's seven cities, towns, counties, filing for bankruptcy since 2010. it's a mess. get ready because it's going to be a bigger mess because u.s. states and cities have a stunning 3.9 trillion dollars in unfunded little. 3.9 trillion, so, now that the federal court held ha stockton can go bankrupt, whether it's baltimore, detroit, the question now it how many cities follow the path to bankruptcy, and when will the american people say enough is enough of this viers

cycle? it's our city's money. here, go over to public employee unions who are supporting the democratic party with their contributions here. networks to influence who gets elected to the city council, the mayor's command determine how the city is in turn spend the money and is not just a vicious cycle. it is without question a cycle without shame. i think it begins to stop with today's ruling. this so-called gang of eight working behind closed doors to come up with an immigration deal . the "a-team" tells us whether the rest of america will ever be

let in on their little secrets. still close, but plenty of money to do research with robotics world's, squirrels next. prosecutors murder in texas, and the trial of the overall movie killer in "dobbs law" next. ♪ [ male announcer ] you like who you are... and you learned something along the way. this is the age of knowing what you're made of. so, why let erectile dysfunction get in your way?

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♪ lou: law-enforcement drought taxes on high alert after compton townie -- county district attorney and his wife were shot to death in their home saturday. this comes two months after one of the prosecutors was shot and killed near the courthouse. authorities will not say whether the two murders aren't linked. the investigators are not giving a motive, but there are reportedly zeroing in on the local white supremacist prison gang. prosecutor announcing today that justice is death for our

our-colorado shooter. follows the offer for him to plead guilty in exchange for a sentence of life in prison without possibility of parole. the judge set a four month trial to begin the uri of next year and will likely center on whether he was legally insane at the time of the murder. joining us now, colonel defense attorney heather hansen, criminal and civil attorney. good to have you both with us. let me start with this thing that is going on in texas. it's extraordinary. i don't know another instance. >> i have not seen anything like this. the investigation will be focused on finding out who it is their targeting because right now the last person is protecting all the prosecutors in that area. the resources are running slim. lou: the district attorney was under protection himself. >> and this was just a full on

gasol of the entire justice system. and no matter which side you work on, where the work for the prosecutor, defense attorney, everyone feels this. we are all working toward the same goal, justice, even if you and other side of -- opposite sides. this is a follow-on attack and it needs to be dealt with. there can't be any more -- lou: they're talking about that this could be an area in brotherhood or never is called, the white supremacist group. but also, the cartels have infiltrated taxes and much of the country. what are your thoughts? >> there are investigating both of those. i think they tend to be more focused on the brotherhood. the problem is they need to focus it. i know it is based on the investigation coming to the forefront. everyone -- this is the only way @%r criminal justice system works as a of the people who enforce it can feel safe to do so. citing that they need to

investigate to is the focus of this killing. lou: in that case they cannot enforce much in taxes. under protection, a district attorney shot and killed his wife shot and killed. i mean, how could this happen being protected? >> i don't know, and it sounds very similar to what happened in california. the rogue shooter when net income of other police officers and their families. it seems similar in terms of motive. obviously it was not him because he was dead, but it was someone with similar motivation to take down the justice system. i don't know how the prosecutors can go on and do -- they have to do their jobs. how did they do that and the protection? data they do that with their families at risk? it is an incredibly dramatic event that is happening to all law enforcement, no matter where they are. putting everyone feels this. lou: the prosecutor, shifting

gears here a bit, rejecting the attempt by the attorneys to plea-bargain life without parole . are you surprised at that? >> i am not. i think they feel as though they have a very strong evidence against the affinity plea. what i think is interesting, this talk before about how long the trial is seeking. colorado's a similar state where the jurors are allowed to ask questions. the costs and the time and the emotion involved. lou: and the trial will even begin until everything goes according to schedule. >> this is certainly an appropriate case to have it for.

this is the type of case that the death penalty is meant for. however, it is equally compelling issues and the other side. there will be in pain no matter what the prosecutor would to do. lou: pea obviously feels strongly. >> and one would -- lou: sure. >> one would think that death would be final. however, to even get to that point would take years of appeals, years and years and millions of dollars. you can't put a price tag on justice, but you are going to come pretty close to wondering what the cost is for something that is an insurer and a death penalty case. lou: not to be unkind to attorneys, but they seem to find a way to put a price on justice.

we thank you both for being here. we thank you. join us in the discussion. tweet me. democratic chairwoman spent easter paying supporters for money and we will tell you why next. ♪

♪ lou: a controversy only a gun tax going into effect in cook county, illinois. we will solve the problems. $25 tax on each new gun. banned in chicago, says the tax that they levied against the suburban gun stores, county officials expecting that the tax to generate a lot of money, maybe $1,600,000 per year. we will see how that works.

as a republican congressional mitt committee luncheon in new website tracking government spending, the waste list. found more than $42 billion in needless spending. our federal government. i can't believe that. money that a secret fund up to 45,000 years. how stores. these folks have a sense of humor. i cannot believe the republicans are doing this including nearly a million dollars for a study that concluded that male fruit flies are more attractive to young females than older ones. $325,000. we have to go forward with these things. to see if they are attacked in the same way that real squirrels can get a tax. and $10,000 to buy 400 talking

cakes that would warrant in did apparently warrant about the dangers of drug traffic. all i can imagine is a drug fellow listening to a urinal cake. anyway. the democratic national committee getting desperate for money sending and the dramatic fund-raising e-mail over the eastern weekend. we spent everything that we had to spend in 2012 to win the white house. because of seats in the house. we spend every last penny that we had in 2012. talk about redundant. it's a democratic operation. $22 million in debt just over $4 million of cash on hand . how about if you can. conservative groups calling for a boycott.

instead of the easter holiday. this is the image from bugle's homepage yesterday. cesar chavez, defending it calling we enjoy celebrating holidays, but as you may imagine it is difficult for us to choose which events to highlight on my site. sometimes we feature an historical site -- event or influential figure. they recognize other religious holidays before. the website has not produced since 2000. but the really much of an easter google. i do want to point out. amelya half. he had about 15,000 people working in the united farm workers union. we're open to interpretation.

three people were dead and dozens injured after a 100 crashed into a highway in virginia. state police determined there were 17 separate crashes involving 95 vehicles with the miles ban on interstate 77 near the virginia and north carolina border. traffic along the highway was backed up for about 8 miles. police say that they tried to warn people, but they did not listen. up next, president obama's says immigration reform will it the senate floor soon. innovate member center mark arubia not so sure. the "a-team" takes all of that up and more. here next. stay with us. ♪ this is $100,000. we asked total strangers to watch ifor us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime.

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♪ lou: president obama questioning his ability to play. the president shooting baskets after the easter egg roll with members of the washington wizards, children, the president taking 22 shots. he missed 20 of them including an air ball, to missed layups. i'm not going to be overly critical of the skills. the president not fearing to much better in his n.c.a.a. bracket well, they went away. as we 16. joining us now, the "a-team," former reagan political director , democratic strategist robert zimmerman, author, radio talk-show host of fox news contributor who has --

>> they can't even agree i swear i think republicans would sign off on a bull that is being pushed by senator schumer and president obama. >> and patrick leahy is the chairman of the senate judiciary committee. >> something is serious and complicated as i ration reform should not be done in haste, nor should it beedone in secret which a lot of this is going on. rubio and others are saying, if really going to start down this path we have to make sure it's done in a transparent way so that the american public can judge for themselves. lou: you wants to see democracy in a democracy. >> every member of that senate democrats. when this issue its thoroughly vetted. lou: thoroughly vetted.

you heard him say that there what definitive legislative language and they are done. that is exactly. that is exactly what he says. >> is going to get to the senate for a vote. it will be ample debate. the going to let them vote on it? >> really nice people. >> did you ask? built the house and the senate? >> it's up to the president. >> the absurdity. let's get those senators. one who is on the potential prosecution. one member of the leaders that is retiring. way before their finished. john mccain. >> always on some gang of eight and the idea that these can come and make the other 92 fall in line is absurd.

the judiciary committee. the fact that there have not been eurasian years does not mean that there should be now. it brings. >> i applauded. >> that is applause. we're going to have to use it as a backdrop as we get to commercial break. as we come back there will be more as we hear your answers to some of the political questions that face us now that we are moving ships and men and material into the region to deal with, what is his name? we will be right back with "a-team." stay with us. ♪

lou: all right. the presidents two if-22, and 2 about 52 -- b-52s over south korea. and destroyer, missile

destroyer. this looks like a show of force that will have kim jong-un-hinged going crazy. >> this is above partisan debate. lou: i'm speaking to you as an american. >> i'm answering as an american. lou: no, you are a democrat. >> and a proud one. the administration tactics so far are praised by former bush administration officials and democratic foreign policy officials, th the goal is to sed reinforcement on our allies and make it clear -- lou: here is the deal weaker deal, we have 35,000 troops along the dmz. with 35,000 troops on that dmz, the u.s. is proved to be, we're

damn foolies to leave the troops there. i find it inexcusable. what do you think? >> they have been the trip wire. lou: i don't neat 35,000 people -- need 35,000 people being -- >> the only way you can deal with this guy is a show of strong, i wish that show of strong would be some ora or othr allies. lou: here is what you don't like. we're under no obligation that i can so as americans, just because we're the one super power. we're under no obligation, what so ever to exposure pilots, and our troops to risk. we have done so for past 20 years. in case of north korea, why not instead of this, send a icbm . >> are yo you arguing that south

korea is no longer a -- lou: i am arguing i do not need to see another american casualty because we have an allie in south korea. if north korea deserves a military response give them a military strong. >> from the united states? lou: well, who the hell else. >> dare them into a conflict. lou: prompt them or dare them? are you -- >> may i finish my point. lou: not nel you say what you mean. >> having our troops in dmz is an important reinforcement. >> i am sorry, i do not see how we got the license to put our troops at death. when american people put up 36,000 of our troops to hold in check a terrorist state like north korea, inse